Last Week’s 30-Yr Conforming — Lowest Level Since May 29by Tim Manni
According to the latest issue of HSH’s Market Trends Newsletter, last week’s average for Conforming 30-year fixed-rate mortgages was 5.35%, the lowest such figure since May 29.
“In an early summer swoon, mortgage rates continued to press downward, following waning enthusiasm about the economy’s prospects.”
“For all purposes, this week was a holiday week. Quiet markets have a tendency for larger-than-normal swings, and this week’s outsized rally in Treasuries was probably exaggerated to some degree. Fears that America needs to find new buyers for her massive debt issues have proved to be groundless, at least for the moment, as the Treasury’s sale of 10-year bonds went far better than planned.”
“A few weeks ago, a kind of buyer’s strike — driven by huge amounts of supply, reinforced by concerns about potential inflation — saw Treasury yields and mortgage rates spike to last fall’s levels. Since then, we’ve regained considerable ground, as growth and inflation remain more of a prospect than a reality.”
“The overall average for 30-year fixed-rate mortgages of all stripes — measured by HSH’s Fixed-Rate Mortgage Indicator — shed eleven basis points (.11%) this week, ending the first full week of July at 5.70%, moving us closer to pre-rate-flare territory. The FRMI’s 5/1 Hybrid ARM companion slipped back a tenth-percentage point, closing at 5.12%. The 5.35% weekly average for Conforming 30-year FRMs was the lowest such figure since May 29.”
Click here to continue reading “Rates Continue Downward Drive; Refi Redux?” HSH’s free weekly Market Trends Newsletter, an in-depth analysis of various financial markets of the week prior, is published every Monday. Email subscribers receive it in your inbox by Friday night, so sign up today! Also, be sure to check in with our Market Trends blog for all news relating to any weekly shift in mortgage rates.”